EUR/GBP Price Analysis: Retreats towards 0.8700 but bulls can stay hopeful

• EUR/GBP snaps four-day winning streak while stepping back from two-month top.
• Receding bullish MACD signals indicates further weakness, 100-SMA and three-week-old support line test sellers.
• Multiple upside hurdles stand ready to challenge the bulls.

Failures to cross 0.8720 upside hurdle triggers EUR/GBP pullback to 0.8710, down 0.06% intraday, ahead of Monday’s European session.

While easing MACD and failures to refresh monthly top suggests further pullback towards 0.8675 immediate support, an area comprising multiple levels marked since April 12, 100-SMA and an ascending trend line from April 05, around 0.8635-45, becomes the key to watch.

Even if the EUR/GBP drops below 0.8635, 200-SMA level of 0.8603 and early April bottoms near 0.8580 can will test the sellers afterward.

Alternatively, an upside clearance of 0.8720 needs to cross late February highs near 0.8730, as well February 05 low of 0.8738, before convincing the EUR/GBP buyers.

Following that, the 0.8800 threshold and late 2020 lows near 0.8860-70 should gain the market’s attention.

EUR/GBP four-hour chart

Trend: Pullback expected